Bank of Korea Completes Tokenized Cross-Border Payment Trial in 80 Seconds

• BOK completed tokenized payments with settlement finalized in an average of 80 seconds.
• Project Agora tested 30 cross-border transactions across 17 scenarios using six currencies.
• BOK validates tokenized reserve transfers and broader payment interoperability.

The Bank of Korea (BOK) has completed a live cross-border payment trial that settled transactions using tokenized central bank reserves and commercial bank deposits, with the full process taking an average of one minute and 20 seconds from payment instruction to final settlement. 

The exercise formed part of Project Agora, an international initiative coordinated by the Bank for International Settlements (BIS), and tested how tokenized money can support faster and more transparent cross-border transactions. 

According to the central bank, the platform remained stable throughout the trial despite operating in an environment that was only partially connected to existing banking infrastructure.

International Trial Tests Multiple Payment Scenarios

The news exercise brought together 28 central banks and global financial institutions. South Korea’s participants included KB Kookmin Bank, NH NongHyup Bank, Shinhan Bank, Woori Bank, and Hana Bank.

During the trial, participants completed 30 transactions across 17 different scenarios. The tests covered corporate remittances, interbank transfers, and foreign-exchange payment-versus-payment settlements across six currencies, including the Korean won, the U.S. dollar, and the euro. The combined transaction value reached approximately 800,000 Swiss francs.

The Bank of Korea said the platform allowed participants to monitor transaction progress and processing paths in real time, even without full integration with existing payment networks and bank computer systems. Final settlement took an average of 80 seconds.

Domestic Transfer Demonstrates Tokenized Reserve Process

Alongside the international exercise, the central bank conducted a domestic interbank transfer involving 20 million won between NH NongHyup Bank and Shinhan Bank. The test covered the complete lifecycle of tokenized reserves, beginning with payment instructions from both banks before the reserves were issued, transferred, and redeemed through the Project Agora platform.

The transaction also included a manual connection between Project Hangang, the Bank of Korea’s wholesale central bank digital currency platform, and the central bank’s existing financial network to verify interoperability.

Separately, KB Kookmin Bank completed a deposit token payment test with Japan’s MUFG Bank, becoming the first South Korean commercial bank to conduct an overseas settlement using deposit tokens. The Bank of Korea said further live transaction tests will expand the project to additional payment types and operational scenarios not included in the latest trial.

Related: Bank of Korea’s CBDC Trial Lacked Independent Security Audits: Report